R

etail sales rose 10.3 percent in March, bolstered by information and communication equipment, a Bank Indonesia (BI) survey showed on Friday.

The growth rate was slower than a revised 13.5 percent the previous month, due to a slowdown in food, beverage and tobacco purchases. The survey also showed that sales in cultural activities and recreation dropped 4.9 percent year-on-year.

The survey of 600 retailers in 10 major cities across the archipelago expected sales in April to rise 13.1 percent, again supported by information and communication equipment.

Retailers expect price pressures to increase in the next six months as higher domestic demand and an expected fuel-price hike would lead to higher production and distribution costs.

Economic growth slowed in the first quarter of the year to 6.02 percent due to a slowdown in domestic consumption and low investment. Domestic consumption accounts for more than 50 percent of the economy.